The GBI: Metalworking backlog indicates that there will be further improvement in durable goods capacity utilization in 2021.
The change in the real 10-year Treasury rate was negative for the 24th month in a row. However, the change was at its highest level since December 2019.
Led by three consecutive months of the GBI: Metalworking over 50, machine tool orders are moving in a positive direction.
The GBI 2020 Year In Review looks back at business activity data over the last 12-months in order to give manufacturing leaders the insights they will need to maximize their success in 2021.
November orders were 2.8% more than one year ago, making it the first month of growth since February 2020 and just the second since January 2019.
Manufacturers closed the year on a high note as business activity across many business elements improved during December. Trends seen during the second-half of 2020 suggest that 2021 will have challenges of its own that manufacturers would be wise to proactively tackle early in the new year.
In October, real cutting tool orders were $167.9 million, which was the highest order total since March.
While disposable income is growing at its fastest annual rate in 35 years, consumer spending is contracting at its fastest annual rate since the data series started in 1959.
The month-over-month rate of growth for durable goods spending was 12.1%, which was the sixth straight month with growth faster than 11%.
For the fourth time in sixth months, housing permits grew faster than 11.5%.
The month-over-month rate of contraction was close to 6.0% each of the last five months.
Capacity utilization has improved every month since April. The annual rate of change in capacity utilization should bottom out any month now.
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